Sayaji hotels : The Next Super Star in the Hotel Industry

Introduction: – Booming tourism industry and higher business travel has led to insufficient rooms in Indian hotel industry. As a result, most hotels in all categories are enjoying best ever occupancy as well as ARPU.The hotel industry is expected to do much better in the next 2-3 years.

In such a scenario, India’s leading premium three-star hotel and food chain Sayaji hotels appears a good pick. Promoted by the Dhanani family of Indore, the company has hotels in baroda and indore and Gandhidham..In fact,Indore property enjoys dominant position in indore city with its central location.Sayaji faces very little competition in Indore. Indore hotel offers full marriage package which is very popular and big money spinner for the company 30 to 40% revenue of the hotel group is from marriage packages. Future prospects: Company has been performing exceedingly well. Revenues for the year 2008 were 69.18 crores, an increase of 53.78 percent over the prior year.

The company has set up a 350 room hotel in pune.Company is also planning to set up another hotel in one of the major prime cities. These 2 projects will catapult sayaji into bigger league.

The company has up chain of restaurants called ‘kabab ville’.These restaurants offer high quality speciality food at reasonable prices.

Mr. Sajid Dhanani, Managing Director, Sayaji hotels commented: “We have grown considerable in the last year and have achieved our set target. Going forward this year, we are opening our four star category hotel having 247 rooms in Pune and also concentrate on opening more Barbeque Nation Restaurants, adding 30 more to the already existing 10 restaurant outlets. We are also adding 200 rooms in out existing hotel at Indore and will be operational in the year 2010-11 and adding one more mid segment hotel in Indore having 204 rooms by 2009-10. After successful running of our F&B outlet buffet junction at Ginger hotels at Baroda we are planning to role out the model in other centers and mall all over India.”

The company is planning to capitalise the hospitality boom by opening 100 Barbeque Nation restaurants in the next 3 years. Barbeque Nation restuarants chain has presence in 11 cities at present and plans to open 34 more by dec09 and total target is 100 by end of fiscal 2009-10. 20% of the profits of the Barbeque nation is distibuted among staff causing accelerated growth of the group.

Sayaji Hotels Ltd has informed BSE that the Opening of Barbeque-Nation Restaurant at Ahmedabad (Gujarat) by wholly owned subsidiary Company of the Company. Further the Company has informed that, Sixth Restaurant is opening on May 02, 2008 at Ahmedabad (Gujarat). The Company is inaugurating the new Restaurant at Shop No. 3, Shivalik-3, Near Milestone Complex, Drive in Road Ahmedabad. The Sixth Restaurant is being opened by the wholly owned subsidiary Company M/s. Barbeque-Nation Hospitality Ltd and currently operating five restaurants at Jaipur, New Delhi, Lucknow, Chandigarh and Chennai. The Company is already opening five restaurants at Pali hills-Bandra, Mumbai, Indra Nagar-Bangalore, Koramangala-Banglore, Banjara hills-Hyderabad and Gurgaon near Delhi.

The company has been posting consistently improved performance for the last 4 years.Present EPS is Rs.5/-and scrip quoting Rs.86 at BSE. and has taken support at Rs 85 levels.Though valuations are not dirt cheap but numbers should speak in the coming quarters.Prospects looks good.Management is ambitious and they are doing all the right things needed to make a name for themselves.